2014 06 14 Buying City of London Investment Group and selling Howdens Joinery

The FTSE 100 and the FTSE 350 are failing to make new highs.The FTSE 250 is now making lower highs. Is this the beginning of a down-trend? Who knows! As a trend follower I try and trade with the trend, not against it. The FTSE 100 only had one share making a new high this week as opposed to eleven making new lows. It's pretty difficult to see where it's all going, so I'll stick to individual stocks this week.
I'm going to place a long trade (buying) City of London Investment Group (CLIG). They specialise in close-ended funds, especially in the emerging markets. Their graph is persuasive: The share price has made a new high, it looks like its trending upwards,there are high lows and higher highs in place and the shorter MA has crossed the longer MA. What's not to like? Only one thing that I can see: the share price is quite volatile, so it could be a bit of an emotional roller-coaster.

2014 06 14 Buying City of London Investment Group

The other trade that I am going to place - as a CFD - is a sell trade: selling Howdens Joinery (HWDN). This share price has dropped through the ma50 (twice), and has lower lows and lower highs in place. I will sell it once or if the price drops below 299 to make sure that it really is on the way down when I sell it.

2014 06 14 Selling Howden Joinery

If you want to see a video of these thoughts and catch up with my existing portfolio, click here

Have a great week!


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